Belarus Borrows Another $1Billion in Eurobonds

20.01.2011 09:45
Архив Редакция

Belarusian authorities have placed a seven-year Eurobonds of $800 million worth by 8.95% per annum, said a source in the Russian banking circles. The organizers of the transaction are banks Sberbank (Russia), BNP Paribas (France), RBS (Scotland) and Deutsche Bank (Germany). 

Experts believe that the payments on Eurobonds will be almost twice higher than the interest rate of the International Monetary Fund, IA «REGNUM-Belarus» reported. However, they specify that the Belarusian eurobonds are not burdened with such conditions as the structural reforms of the economy or financial discipline maintenance, while high interest rates indicate high risk of a deal.

As Telegraf previously reported, the presidium of the Council of Ministers of Belarus, approved the placement of the Belarusian government bonds in Asian markets worth at least $ 500 million on November 23, 2010. Chairman of the National Bank Petr Prokopovich announced the seven-year term of Eurobonds placement and the conditions, similar to the production of the first Belarusian Eurobonds of $600 million worth in summer, 2010 — under 9%.

Earlier, the Government of Belarus was allowed issuing Eurobonds worth up to $2 billion with maturity of at least five years and their placement outside the country in 2010-2011.

With regard to further floatation of the Belarusian government bonds on the European market, Petr Prokopovich said that «the Ministry of Finance sees no grounds and necessity for this in the near future.»

Meanwhile, Alexander Lukashenko stressed at a meeting on the Belarusian economy on January 18 that the government should not resort to high-interest foreign borrowings for the development of the economy.

Как вам новость?